Goldman Sachs "US Labor Market Recovery This Year... Unemployment Rate Forecasted at 4.1%"

Source: CNBC

[Asia Economy Reporter Yujin Cho] Goldman Sachs has forecasted that the U.S. unemployment rate will drop to 4.1% this year, returning to pre-COVID-19 levels.

On the 8th (local time), Goldman Sachs stated that the pace of improvement in the U.S. unemployment rate is accelerating due to strong employment, according to the economic media outlet CNBC. This figure is the lowest among Wall Street forecasts.

Goldman Sachs cited the $1.9 trillion stimulus package promoted by the Joe Biden administration and the effects of vaccine distribution as reasons for the strong economic recovery in industries hit hard by the COVID-19 crisis.

This aligns with the outlook of U.S. Treasury Secretary Janet Yellen, who, during a virtual discussion with Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), predicted that the U.S. labor market will return to normal levels after the end of the year.

Secretary Yellen stated, "I believe there is a forecast that if full efforts are made toward vaccination and school normalization, the labor market can return to normal levels by the end of this year or next year."

The U.S. unemployment rate, which was at its lowest level in 50 years at 3.5% as of February last year, surged to 14.8% immediately after the COVID-19 pandemic, but has significantly recovered to 6.2% as of February this year.

Goldman Sachs reiterated, "The increase in government-related jobs is a positive factor in achieving an unemployment rate in the 4% range."

The U.S. Senate passed a $1.9 trillion budget bill led by the Democratic Party on the 6th despite opposition from the Republican Party, and a House vote is expected as early as the 9th.

This content was produced with the assistance of AI translation services.